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REGULAR MEETING APRIL 11, 2015 It is in keeping with that framework that the Administration negotiated an agreement is unprecedented in its generosity to a community with Class Two tribal gaming. Any gaming facility brings costs as well as benefits, those costs can include increased use of infrastructure, public safety resources and potential economic effects that can cut both ways. The purpose of this agreement is to ensure the benefits outweigh the costs. Under the agreement, the City receives two percent (2 %) net revenue with a guaranteed floor of either $1 million or $2 million dollars a year depending on the size of the facility. The Administration believes the actual revenues are going to be much higher than that minimum. The funding can be used for public safety, economic development or other appropriate uses as budgeted by the Administration and Council in the years to come. In addition, the Tribe has agreed to donate $5 million dollars over five (5) years to a number of important causes in the community that range from the Bowman Creek Project, Boys and Girls Club, South Bend School Corporation, the local Food Bank, Parks Department, landscaping and resurfacing on Prairie Ave and a number of other projects. These commitments have come from a vigorous back and forth discussion between the Administration and the Tribe. Collectively, this agreement meets the best interest of both the City and the Tribe. There is a lot of passion in the community both in favor and in opposition to Indian gaming but the Mayor wished to stress that the question of whether gaming will happen or not has already been decided by Federal Law. The question now is do we play a role in how the City can benefit from that casino. The full text is online for public inspection as well. Cristal Brisco, Corporation Counsel of the City with offices on the 12th Floor of the County -City Building, spoke about the legal specifics of the agreement. This agreement deals with the proposed development of the 166 acre site in South Bend which includes a tribal village and a casino. This demonstrates the Pokagon's good faith efforts to replace lost tax revenue as a result of this property becoming Federal Trust land. There is no legal requirement for the Tribe to offer Class 2 gaming agreement with the City. This agreement involves payments in lieu of taxes, $5 million in community donations and other terms and conditions related to the development of the site. The Pokagon Band agreed to make an annual payment to the City of South Bend which is equal to two percent (2 %) of net wins. The net wins calculation is comprised of the total amount wagered minus the total amount paid for prizes on each game, excluding free play. One percent (1 %) will be paid to the City's general fund and the other one percent (1 %) will be paid to the South Bend Redevelopment Commission to fund initiatives broadly aimed at contributing to the improvement of local educational opportunities and to address poverty and unemployment in the City. The first payment will be due one (1) year after the casino is open for gaming. The payments will not be less than $1 million annually if the casino is home to between 850 and 1699 games and will not be less than $2 million annually if the casino is home to over 1700 games. Councilmember Oliver Davis asked the Mayor how he would respond to the claims that crime would increase, more negative outsiders would come to the City and that traffic will be congested on the South West side of the City. Mayor Buttigieg responded they have made no effort to ignore the fact that there are costs as well as benefits and that is exactly why it is so important we have this agreement. The Tribe was willing to enter into good faith discussions with us on how to ensure with community that this will be a net positive for South Bend. For example certainly there will be more traffic on the roads which leads to more wear and tear but that would be offset by resurfacing improvements to Prairie Ave as well as the extra money in the General Fund. The revenue promised more than exceeds any costs we would expect for any additional burden on safety resources. There is a very strong case that this will be an economic development generator for the City. It is understandable to have a fear of the unknown as this is something the City has never had before but the level of support the Tribe is willing to commit toward it is extraordinary. The Federal approval process is its own entity outside of the scope of this agreement and there is opportunity for public input on that end. This is an opportunity for us to say the community will benefit the most from this proposed project. Councilmember Oliver Davis asked the Mayor to speculate on how five (5) to ten (10) years from now this project would leave a positive mark on the City of South Bend with this agreement in place. 13